PTTEP writes off Janaka-2 on Block M3 off Myanmar

PTT Exploration & Production PLC's recent probe for hydrocarbons in Myanmar's Gulf of Martaban was a disappointment.

Jan. 21, 2009

By an OGJ correspondent
BANGKOK, Jan. 21 -- PTT Exploration & Production PLC's recent probe for hydrocarbons in Myanmar's Gulf of Martaban was a disappointment.

Although natural gas was found with Janaka-2, the first exploration well drilled on Block M3, the discovery was commercially insufficient, said the Thai state-controlled company.

Spudded on Sept. 28, 2008, the well was drilled to 3,351 m TD and encountered one 4 m petroleum-bearing formation.

The tubing stem test was not performed, and PTTEP wrote off $27.35 million, the cost of the well.

The results raised questions about the potential of the 7,770-sq-km acreage, especially as a previous well, Janaka-1 in PTTEP-operated Block M7, was abandoned earlier, although traces of gas were discovered (OGJ Online, Jan. 2, 2009).

However, PTTEP Chief Executive Anon Sirisaengtaksin vowed to continue studies on Block M3 and plans to evaluate the petroleum potential soon for additional exploration. Earlier last year, PTTEP acquired 500 line km of 2D seismic on M3.

PTTEP operates M3 and owns an 80% stake in it, with China National Offshore Oil Corp. holding the remaining 20% interest.